With business closures, layoffs, and rapidly rising unemployment, many Americans are experiencing severe financial hardship as a result of the coronavirus crisis.
The good news is that relief is available for those who need it and can help safeguard your finances as you navigate these uncertain times.
Continue reading learn all about protecting your wealth during the coronavirus pandemic.
Income Replacement
Government-issued stimulus checks are one of the most noteworthy components of the recent $2 trillion stimulus package, the CARES Act.
To be eligible for a stimulus check, Americans must have filed a 2018 or 2019 federal tax return.
Single filers with an adjusted gross income of up to $75,000 will receive a $1,200 stimulus check.
Married couples who filed jointly and have an adjusted gross income of up to $150,000 will receive a $2,400 stimulus check. Families will receive an additional $500 per qualifying child under the age of 17.
Heads of households with an adjusted gross income of up to $112,500 will receive the full amount of the stimulus payments.
Mortgage Forbearance
Borrowers with federally-backed mortgages can request a temporary loan forbearance for up to 180 days from their mortgage servicer. They can also request a 180-day extension of the forbearance period.
In order to be eligible, borrowers must contact their lender and demonstrate that they are experiencing financial hardship as a result of the coronavirus crisis.
That being said, it is not known exactly what will be expected of borrowers at the end of the forbearance period. It is very possible some lenders may request a balloon payment, which is a lump sum of all deferred payments, at the end of the period.
Be sure to understand what is expected before making a decision.
Check Your Credit Scores
When it comes to protecting your wealth during the coronavirus pandemic, be sure to check your credit score. More specifically, stay on top of credit reports from all 3 credit bureaus each month and report any discrepancies or errors right away.
Student Loan Deferment
The CARES Act also provides an up to 6-month payment pause and interest waiver for Americans with certain federal student loans that are owned by the U.S. Department of Education.
While borrowers do not need to apply for a pause in loan payments, they should confirm that they are in fact eligible for relief.
Learn More About Protecting Your Wealth During the Coronavirus Crisis
For additional information about protecting your wealth during the coronavirus crisis, please contact our office today to speak with one of our financial specialists.
